PRINTER'S NO. 3161
No. 2421 Session of 1980
INTRODUCED BY RIEGER AND RAPPAPORT, MARCH 25, 1980
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, MARCH 25, 1980
AN ACT
1 Regulating contracts for health spa services and membership and
2 prescribing remedies and penalties.
3 TABLE OF CONTENTS
4 Section 1. Short title.
5 Section 2. Definitions.
6 Section 3. Written contract required.
7 Section 4. Contract restrictions.
8 Section 5. Related lender subject to a buyer's claims and
9 defenses.
10 Section 6. Performance of contract; cancellation and
11 refund.
12 Section 7. Relief from payment upon death or disability;
13 relocation.
14 Section 8. Date of contract.
15 Section 9. Buyer's plans or options.
16 Section 10. Assignment of contract.
17 Section 11. Statement of buyer's rights.
1 Section 12. Preopening bond.
2 Section 13. Proof of financial responsibility in lieu of
3 bond.
4 Section 14. Deposit in lieu of bond.
5 Section 15. Escrow in lieu of bond.
6 Section 16. Continuing bond.
7 Section 17. Deposit in lieu of bond.
8 Section 18. Provisions not exclusive.
9 Section 19. Noncomplying contracts voidable.
10 Section 20. Fraud rendering contract void.
11 Section 21. Waiver of provisions.
12 Section 22. Recovery of treble damages and attorney
13 fee.
14 Section 23. The use of professional title without legal
15 authorization.
16 Section 24. Unlawful method, act or practice.
17 Section 25. Regulations.
18 Section 26. Restraining prohibited acts.
19 Section 27. Assurances of voluntary compliance.
20 Section 28. Civil penalties; violation of injunction or
21 assurance of voluntary compliance.
22 Section 29. Civil penalties; willful violation
23 Section 30. Civil penalties; violation of sections relating
24 to bonds.
25 Section 31. Forfeiture of franchise or right to do business.
26 Section 32. Effective date.
27 The General Assembly of the Commonwealth of Pennsylvania
28 hereby enacts as follows:
29 Section 1. Short title.
30 This act shall be known and may be cited as the "Health Spa
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1 Consumer Protection Act."
2 Section 2. Definitions.
3 The following words and phrases when used in this act shall
4 have, unless the context clearly indicates otherwise, the
5 meaning given to them in this section:
6 "Contract for health spa services" or "contract." A contract
7 for instruction, training, or assistance in physical culture,
8 bodybuilding, exercising, weight reduction, figure development,
9 dating or social introduction, or any other activity represented
10 by an offeror of such services to contribute to the physical,
11 well-being of a purchaser, or for membership in any group, club,
12 association, or organization formed for any such purpose, such
13 services being as to a purchaser or member's frequency of use or
14 participation nonspecific and subject to the discretion of the
15 purchaser or member, subject to reasonable rules and regulations
16 of the offeror, but shall not include contracts offered by
17 schools operating pursuant to the provisions of the act of March
18 10, 1949 (P.L.30, No.14), known as the "Public School Code of
19 1949," or private accredited colleges or universities or private
20 accredited business, trade, or professional schools, or
21 contracts with organizations not operated for profit.
22 "Health spa." Any business entity offering health spa
23 services to the public.
24 Section 3. Written contract required.
25 Every contract for health spa services shall be in writing
26 and shall be subject to the provisions of this act. A copy of
27 the contract shall be given to the buyer at the time the
28 contract is executed.
29 Section 4. Contract restrictions.
30 (a) All contracts for health spa services which may be in
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1 effect between the same seller and the same buyer, the terms of
2 which overlap for any period, shall be considered as one
3 contract for the purposes of this act. A buyer and seller can
4 enter into only one contract at a time, with the exception that
5 a buyer may renew a contract 30 days before the expiration date
6 of an existing contract.
7 (b) No contract or series of contracts for health spa
8 services for any 36 month period shall exceed a total cost of
9 $1,200 for any such 36 month period.
10 (c) No contract for health spa services shall provide for a
11 term longer than 36 months. No contract for health spa services
12 shall require payments or financing by the buyer over a period
13 in excess of 37 months from the date the contract is entered
14 into, nor shall the term of any such contract be measured by or
15 be for the life of the buyer: Provided, however, That the
16 services to be rendered to the buyer under the contract may
17 extend over a period not to exceed three years from the date the
18 contract is entered into. The installment payments shall be in
19 substantially equal amounts and shall be required to be made at
20 substantially equal intervals, not to exceed one month.
21 (d) No contract for health spa services may contain any
22 provisions whereby the buyer agrees not to assert against the
23 seller or any assignee or transferee of the health spa services
24 contract any claim or defense arising out of the health spa
25 services contract.
26 (e) No contract for health spa services may require the
27 buyer to execute a promissory note or series of promissory notes
28 which, when negotiated, cut off as to third parties a defense
29 which the buyer may have against the seller. An assignee of a
30 provider of health spa services or a transferee of a buyer's
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1 monetary obligation incurred in a health spa services
2 transaction shall not be liable to the buyer in respect of any
3 claim or defense against the provider of health spa services
4 beyond the amount originally paid by such assignee or transferee
5 for the obligation assigned or transferred.
6 Section 5. Related lender subject to a buyer's claims and
7 defenses.
8 (a) With respect to any separate financial obligation
9 incurred by a buyer in connection with the purchase of health
10 spa services, a lender who is a related lender with respect to a
11 provider of health spa services shall be subject to all claims
12 and defenses of the buyer arising out of the transaction for
13 which the loan was made, which would be assertable in an action
14 between the buyer and the person providing health spa services,
15 but the lender's liability in the aggregate for any one
16 transaction shall not exceed the amount originally loaned to the
17 buyer in respect of that transaction.
18 (b) The term "related lender" refers to a lender whose
19 participation in a health spa services transaction is arranged
20 by the provider of the health spa services. Knowledge alone on
21 the part of the lender that the proceeds of the loan shall be
22 used to purchase health spa services shall not cause the lender
23 to be a "related lender." Without limiting the scope of inquiry
24 concerning arrangement by the seller, the seller will be deemed
25 to have arranged the loan, and the lender may be presumed to be
26 a "related lender" when one or more of the following
27 circumstances exist:
28 (1) the lender or a principal officer, principal
29 shareholder, partner, owner, or principal supplier of capital
30 is so connected with or related by blood or through marriage
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1 to the provider of the health spa services or one of such
2 person's principal officers, principal shareholders,
3 partners, owners or principal supplier of capital other than
4 that supplied by the lender, that dealings between the lender
5 and the provider of the health spa services would not be at
6 arm's length;
7 (2) the seller has arranged for the extension of credit
8 to the borrower by the lender by providing to the lender
9 either a credit application substantially completed by the
10 buyer or such information acquired from the buyer as to
11 enable the lender to complete substantially such an
12 application;
13 (3) the provider of health spa services receives a fee
14 or other thing of value from the lender in respect of the
15 loan or otherwise has participated, directly or indirectly,
16 with the lender in the finance charge on the loan, or has
17 agreed to purchase from the lender, upon default by the
18 buyer, any collateral held for the loan;
19 (4) the lender directly or indirectly controls, or is
20 directly or indirectly controlled by, or is under direct or
21 indirect common control with the provider of health spa
22 services;
23 (5) the lender and the provider of health spa services
24 are engaged in a joint venture to produce health spa services
25 obligations payable to the lender; or
26 (6) the lender has recourse to the seller for nonpayment
27 of the loan through guaranty, reserve account or otherwise.
28 (c) An issuer of a third party credit card shall be a
29 related lender if the health spa services are acquired by the
30 use of its credit card and the services acquired:
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1 (1) have a cash price of more than $50;
2 (2) the buyer has made a good faith attempt to obtain
3 satisfactory resolution of a disagreement or problem relative
4 to the transaction from the supplier honoring the credit
5 card; and
6 (3) were acquired in the same state as the mailing
7 address previously provided by the card holder or was within
8 100 miles from such address.
9 The amount of claims or defenses asserted by the third party
10 credit card holder shall not exceed the amount of credit
11 outstanding with respect to such transaction at the time the
12 card holder first notifies the card issuer or the person
13 honoring the credit card of such claims or defense. For the
14 purpose of determining the amount of credit outstanding in the
15 preceding sentence, payments and credits to the card holder's
16 account are deemed to have been applied, in the order indicated,
17 to the payment of:
18 (i) late charges in the order of their entry to the
19 account;
20 (ii) finance charges in order of their entry to the
21 account; and
22 (iii) debits to the account other than those set
23 forth above, in the order in which each debit entry to
24 the account was made.
25 Section 6. Performance of contract; cancellation and refund.
26 (a) Contracts for health spa services to be rendered at an
27 existing health spa facility shall provide that the performance
28 of the services is to begin within 30 days from the date of the
29 execution of the contract and shall be voidable at the option of
30 the buyer if the seller fails to comply with this subsection.
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1 (b) A contract for health spa services at a planned spa
2 facility or one which is under construction shall, at the option
3 of the buyer, be voidable in the event that the health spa
4 facilities and the agreed upon services are not available within
5 12 months from the date of the execution of the contract. The
6 seller must provide written notice by registered or certified
7 mail to the buyer in the event that services shall not be
8 available within 12 months from the date of the execution of the
9 contract as soon as the seller knows or has reason to know that
10 the services will not be available. If the seller fails to
11 provide this notice to the buyer, the buyer may void the
12 contract at his option under subsection (a).
13 (c) A contract for health spa services shall provide that it
14 may be cancelled within three business days after the date of
15 receipt by the buyer of a copy of the contract by written notice
16 thereof delivered in person or mailed by certified or registered
17 United States mail to the seller at the address stated in the
18 contract. At the time the contract is executed, the seller must
19 give oral notification to the buyer of his right to cancel. The
20 notice shall be accompanied by evidence of membership previously
21 delivered to the buyer. All moneys paid pursuant to the contract
22 shall be refunded within ten days of receipt of the notice of
23 cancellation.
24 Section 7. Relief from payment upon death or disability;
25 relocation.
26 (a) Contracts for health spa services shall contain a clause
27 providing that if the person receiving the benefits of the
28 contract dies or becomes permanently disabled during the
29 membership term, the buyer or his estate shall be relieved of
30 the obligation under the contract to pay any amount other than
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1 for the pro-rata portion of services or use of facilities
2 already received prior to death or the onset of permanent
3 disability, and a reasonable predetermined fee of a maximum of
4 5% of the outstanding balance or $30, whichever is less, if the
5 health spa chooses to charge such a predetermined fee. In the
6 event of temporary disability, the buyer shall be entitled to a
7 moratorium of the performance of the terms of the contract for
8 duration of the temporary disability. The health spa shall have
9 the right to require reasonable verification of death or
10 permanent or temporary disability. The seller shall have the
11 right to require the buyer to prove temporary or permanent
12 disability by a doctor's certificate; the seller shall have the
13 right to require that the buyer must be examined by a physician
14 agreeable to the seller and buyer at the seller's expense.
15 (b) Contracts for health spa services shall contain a clause
16 providing that if, by reason of the relocation of the buyer more
17 than 25 miles from a health spa facility operated by the seller
18 or a substantially similar health spa facility which accepts the
19 seller's obligation under the contract, the buyer shall be
20 relieved from any obligation under the contract other than for
21 the pro-rata portion of services or use of facilities already
22 received, and a reasonable predetermined fee of a maximum of 5%
23 of the outstanding balance or $30, whichever is less, if the
24 health spa chooses to charge such a predetermined fee. The
25 seller shall have the right to require reasonable verification
26 of relocation.
27 Section 8. Date of contract.
28 All health spa contracts shall designate the date on which
29 the buyer actually signs the contract.
30 Section 9. Buyer's plans or options.
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1 A health spa contract must contain a written list of price
2 plans or options to the buyer, if the seller has more than one
3 plan. The list must provide a clear explanation of all options.
4 A health spa contract must contain a clear indication of which
5 option has been selected by the buyer. The list, explanation and
6 indication of options must appear in at least ten-point type in
7 the contract under the conspicuous caption "BUYER'S PLANS OR
8 OPTIONS."
9 Section 10. Assignment of contract.
10 The buyer of a health spa services contract may assign the
11 contract; however such contract shall not be reassigned to the
12 original buyer by any assignee. An assignee who finances his
13 purchase of a health spa services contract must secure financing
14 before taking the contract by assignment.
15 Section 11. Statement of buyer's rights.
16 All health spa contracts shall contain a statement of the
17 buyer's rights which complies with this section. The statement
18 must appear in at least ten-point type in the contract under the
19 conspicuous caption "BUYER'S RIGHT TO CANCEL," and reads as
20 follows:
21 "If you wish to cancel this contract, you may cancel by
22 delivering in person or by mailing a written notice by
23 certified or registered mail to the health club. The notice
24 must say that you do not wish to be bound by the contract and
25 must be delivered or mailed before midnight of the third
26 business day after you sign this contract. You must return
27 with this notice all evidence of membership. The notice must
28 be delivered or mailed to.....................................
29 (Insert name and mailing address of health club)
30 You may also cancel this contract if you relocate your
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1 residence farther than 25 miles from any health club operated
2 by the seller or from any other substantially similar health
3 club which would accept the obligation of the seller. You
4 may also cancel if you become permanently disabled or
5 relocate. You are entitled to a delay in performance of the
6 terms of the contract if you become temporarily disabled.
7 You may be required to prove such temporary or permanent
8 disability by a doctor's certificate, and the health club may
9 require that you be examined by a physician agreeable to you
10 and the health club at its expense. If you cancel, because
11 of permanent disability or relocation, the health club may
12 keep or collect an amount equal to the pro-rata value of the
13 services or use of facilities you have already received. If
14 you cancel because of relocation or permanent disability, the
15 health club may also charge you an additional predetermined
16 fee of a maximum of $30 or 5% of the outstanding balance,
17 whichever is less. You may, at any time, sell your
18 membership contract to any person as long as the person
19 buying your membership contract can obtain financing, but
20 under no circumstances can you repurchase the membership
21 contract which you previously sold."
22 Section 12. Preopening bond.
23 The health spa which sells contracts for health spa service
24 to be rendered at a planned health spa facility or a health spa
25 facility under construction or a completed facility not in use
26 at the time of execution of the contract shall deposit with the
27 Attorney General a bond issued by a surety company admitted to
28 do business in the Commonwealth. The principal sum of the bond
29 shall be at least $25,000 for each business location. The amount
30 thereof may be increased at the direction of the Attorney
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1 General to such amount as he reasonably determines will equal
2 the amount to be paid under the terms of such contracts prior to
3 opening of the health spa facility, to a maximum of $100,000 for
4 each business location. The health spa shall be relieved from
5 the obligation to maintain the bond 90 days following full
6 operation of the facility and certification of completion of a
7 facility from any registered or licensed architect or engineer,
8 or general contractor. The bond shall be in favor of the
9 Commonwealth for the benefit of any person injured by having
10 paid moneys for use of a health spa facility which fails to open
11 within 12 months of the date the buyer and the health spa
12 entered into a contract. The aggregate liability of the surety
13 to all persons for all breaches of the conditions of the bond
14 shall not exceed the amount of the bond.
15 Section 13. Proof of financial responsibility in lieu of bond.
16 In lieu of furnishing the preopening bond required by the
17 provisions of this act a health spa may furnish such information
18 as may be required by the Attorney General executed under
19 penalty of perjury by an officer or owner of the health spa
20 which reasonably demonstrates such financial responsibility as
21 will enable it to satisfy the possible claims against it.
22 Whenever the health spa is controlled by or controls another
23 corporation and such other corporation agrees in writing to
24 satisfy the claims against it, the financial responsibility of
25 such other corporation shall be considered in determining
26 applicability of this section. In determining whether the health
27 spa shall have the requisite financial responsibility hereunder,
28 the Attorney General may consider the business history and
29 reputation of the health spa, its management in and outside the
30 Commonwealth and the business history and reputation of a
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1 business controlled by, under common control with, or
2 controlling the health spa. Such proof must be furnished until
3 90 days following full operation of the facility and
4 certification of completion of a facility from any registered or
5 licensed architect or engineer, or general contractor.
6 Section 14. Deposit in lieu of bond.
7 In lieu of furnishing the bond required by section 12, the
8 health spa may provide the Department of Justice a deposit in a
9 like amount. This deposit may be satisfied by any of the
10 following:
11 (1) Certificates of deposit payable to the Department of
12 Justice issued by banks doing business in this Commonwealth
13 and insured by the Federal Deposit Insurance Corporation.
14 (2) Investment certificates or share accounts assigned
15 to the Department of Justice and issued by a savings
16 association doing business in this Commonwealth and insured
17 by the Federal Savings and Loan Insurance Corporation.
18 (3) Bearer bonds issued by the United States Government
19 or by this Commonwealth.
20 (4) Cash deposited with the Justice Department, which
21 shall be returned with interest to the provider of the health
22 spa services when the provisions of this act are no longer
23 applicable. All deposits shall be returned when this section
24 is no longer applicable.
25 Ninety days after full operation of the facility and
26 certification of completion of the facility by a registered or
27 licensed architect or engineer, or general contractor, all
28 deposits made under this section shall be returned by the
29 Department of Justice to the provider of the health spa
30 services.
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1 Section 15. Escrow in lieu of bond.
2 In lieu of furnishing the bond required by section 12, the
3 future provider of health spa services may place all funds
4 received in escrow.
5 (1) Funds shall be kept and maintained in an account
6 separate and apart from any other account maintained by or
7 for the seller or any employees of the seller.
8 (2) All moneys paid in escrow shall be placed by the
9 seller in an escrow account in an institution regulated by
10 the Federal Reserve Board, Federal Home Loan Bank Board,
11 Comptroller of the Currency or the Pennsylvania Department of
12 Banking.
13 (3) The seller must provide a monthly statement of the
14 account, which statement need not be an official statement of
15 the financial institution in which the account is placed, to
16 consumers who have advanced funds or obligations until such
17 account is no longer required by this act.
18 (4) The escrow account shall provide that the purpose of
19 the account is to protect the consumer in the event that the
20 seller fails to complete the facility within one year
21 following establishment of the account. At such time the
22 account is to be released pro-rata according to financial
23 loss of the consumers.
24 (5) The escrow account shall provide that funds
25 deposited therein may be withdrawn by the seller upon the
26 completion of facility construction in the following manner:
27 (i) One-third of the funds may be distributed to the
28 seller upon completion of 1/2 of the proposed
29 construction.
30 (ii) No more than 2/3 of the funds which have been
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1 deposited in escrow may be released upon the completion
2 of 3/4 of the proposed construction.
3 (iii) The escrow agent may accept as evidence of
4 partial completion certification of any registered or
5 licensed architect or engineer, or general contractor
6 that the construction has been completed in accordance
7 with the plans and specifications.
8 (6) The escrow account can be released by the escrow
9 agent to the seller 90 days following full operation of the
10 facility and certifications of completion from any registered
11 or licensed architect or engineer, or general contractor.
12 Section 16. Continuing bond.
13 Within 30 days after the effective date of this act, a health
14 spa in operation, or as of its opening date a health spa
15 required to furnish preopening bond or the equivalent as
16 provided in this act, and if the health spa requires of any
17 buyer prepayment of more than $100 during a period of 36 months,
18 such spa shall deposit with the Attorney General a bond issued
19 by a surety company admitted to do business in the Commonwealth.
20 The principal sum of the bond shall be $10,000 for each business
21 location. The bond must be maintained until terminated by order
22 of the court. The bond shall be in favor of the Commonwealth for
23 the benefit of any buyer damaged by any violation of this act on
24 the part of a health spa or failure of a health spa to provide
25 services in performance of a consumer contract. The aggregate
26 liability of the surety to all persons for all breaches of the
27 conditions of the bond shall not exceed the amount of the bond.
28 Section 17. Deposit in lieu of bond.
29 In lieu of the bond required by section 16, the health spa
30 may provide the Department of Justice a deposit in a like
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1 amount. This deposit may be satisfied by any of the following:
2 (1) Certificates of deposit payable to the Department of
3 Justice issued by banks doing business in this Commonwealth
4 and insured by the Federal Deposit Insurance Corporation.
5 (2) Investment certificates or share accounts assigned
6 to the Department of Justice and issued by a savings
7 association doing business in this Commonwealth and insured
8 by the Federal Savings and Loan Insurance Corporation.
9 (3) Bearer bonds issued by the United States Government
10 or by this Commonwealth.
11 (4) Cash deposited with the Justice Department, which
12 shall be returned with interest to the provider of the health
13 spa services when the provisions of this act are no longer
14 applicable. All deposits shall be returned when this section
15 is no longer applicable.
16 The Department of Justice shall return all deposits made under
17 this section to the provider of the health spa services pursuant
18 only to court order.
19 Section 18. Provisions not exclusive.
20 The provisions of this act are not exclusive and do not
21 relieve the parties from compliance with any other law.
22 Section 19. Noncomplying contracts voidable.
23 A contract for health spa services which does not comply with
24 the provisions of this act shall be voidable at the option of
25 the buyer.
26 Section 20. Fraud rendering contract void.
27 A contract for health spa services entered into in reliance
28 upon any willful and false, fraudulent, or misleading
29 information, representation, notice, or advertisement of the
30 seller shall be void and unenforceable.
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1 Section 21. Waiver of provisions.
2 A waiver by the buyer of the provisions of this act shall be
3 deemed contrary to public policy and shall be void and
4 unenforceable.
5 Section 22. Recovery of treble damages and attorney fee.
6 Any buyer injured by a violation of this act may bring an
7 action for the recovery of damages. Judgment may be entered for
8 three times the amount at which the actual damages are assessed,
9 plus reasonable attorney fees.
10 Section 23. The use of professional title without legal
11 authorization.
12 No person may use the term "therapist" or any title
13 applicable to an individual licensed to engage in a profession
14 or vocation under applicable law, in connection with the
15 operation of a health spa, unless the person is a licensee
16 thereunder.
17 Section 24. Unlawful method, act or practice.
18 Any method, act or practice which violates any of the
19 provisions of this act is hereby declared unlawful.
20 Section 25. Regulations.
21 The Attorney General may adopt such rules and regulations as
22 may be necessary for the enforcement and administration of this
23 act. Such rules and regulations when promulgated pursuant to the
24 act of July 31, 1968 (P.L.769, No.240), referred to as the
25 Commonwealth Documents Law, shall have the force and effect of
26 law.
27 Section 26. Restraining prohibited acts.
28 Whenever the Attorney General or appropriate district
29 attorney or the solicitor of any county or city of the first or
30 second class has reason to believe that any person is using or
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1 is about to use any method, act or practice declared in this act
2 to be unlawful and that proceedings would be in the public
3 interest, he may bring an action in the name of the Commonwealth
4 against such person to restrain by temporary or permanent
5 injunction the use of such method, act or practice. The action
6 may be brought in the court of common pleas of the county in
7 which such person resides, has his principal place of business,
8 or is doing business, or may be brought in the Commonwealth
9 Court. The said courts are authorized to issue temporary or
10 permanent injunctions to restrain and prevent violations of this
11 act, and such injunctions shall be issued without bond.
12 Section 27. Assurances of voluntary compliance.
13 In the administration of this act, the Attorney General may
14 accept an assurance of voluntary compliance with respect to any
15 method, act or practice deemed to be violative of the act from
16 any person who has engaged or was about to engage in such
17 method, act or practice. Such assurance may include a
18 stipulation for voluntary payment by the alleged violator
19 providing for the restitution by the alleged violator to buyers,
20 of money, property or other things received from them in
21 connection with the violation of this act. Any such assurance
22 shall be in writing and be filed with the court of common pleas
23 in which the alleged violator resides, has his principal place
24 of business, or is doing business, or the Commonwealth Court.
25 Such assurance of voluntary compliance shall not be considered
26 an admission of violation for any purpose. Matters thus closed
27 may at any time be reopened by the Attorney General for further
28 proceedings in the public interest, pursuant to section 26.
29 Section 28. Civil penalties; violation of injunction or
30 assurance of voluntary compliance.
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1 Any person who violates the term of the injunction issued
2 under section 26 or any of the terms of an assurance of
3 voluntary compliance duly filed in court under section 27 shall
4 forfeit and pay to the Commonwealth a civil penalty of not more
5 than $5,000 for each violation. For the purposes of this
6 section, the court issuing an injunction, or in which an
7 assurance of voluntary compliance is filed shall retain
8 jurisdiction, and the cause shall be continued; in such cases
9 the Attorney General, appropriate district attorney, or
10 solicitor, acting in the name of the Commonwealth, may petition
11 for recovery of civil penalties, in addition to other civil
12 penalties of this act.
13 Section 29. Civil penalties; willful violation.
14 In any action brought under section 26, if the court finds
15 that a person, is willfully using or has willfully used a
16 method, act or practice declared unlawful by section 24, the
17 Attorney General, appropriate district attorney, or solicitor
18 acting in the name of the Commonwealth of Pennsylvania, may
19 recover, on behalf of the Commonwealth of Pennsylvania, a civil
20 penalty not exceeding $1,000 per violation, which civil penalty
21 shall be in addition to other civil penalties which may be
22 granted under this act.
23 Section 30. Civil penalties; violation of sections relating to
24 bonds.
25 Any person who violates sections 12, 13, 14, 15, 16 or 17,
26 relating to bonds shall forfeit and pay to the Commonwealth a
27 civil penalty of not more than $1,000 for each violation. In
28 such cases, the Attorney General, appropriate district attorney,
29 or solicitor acting in the name of the Commonwealth may petition
30 for recovery of civil penalties. The penalties in this section
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1 are in addition to any penalties provided for in other sections
2 of this act.
3 Section 31. Forfeiture of franchise or right to do business.
4 Upon petition by the Attorney General or district attorney,
5 or solicitor, the court having jurisdiction may, in its
6 discretion, order the dissolution, suspension or forfeiture of
7 the franchise or right to do business of any person, firm or
8 corporation which violates either the terms of an injunction
9 issued under section 26 or sections 12, 13, 14, 15, 16 or 17,
10 relating to bonds.
11 Section 32. Effective date.
12 This act shall take effect immediately.
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